The Pound managed to recover from its earlier weakness against the US Dollar on Tuesday to edge slightly higher as investors remained cautious over the US government shutdown. Against the Euro, Sterling was little moved even after the International Monetary Fund revised the UK growth prospects higher. The IMF upgraded the nation’s growth forecast to 1.4% compared to the 0.9% previously forecast. The UK now looks set to become the best global performing economy in 2014.
Currently the Pound is trading in the region of 1.1827 against the Euro and 1.6049 against the US Dollar.
The ‘Greenback’ began the session higher as investors increased their bets that the ongoing political impasse over budget cuts and the debt ceiling will be resolved after President Barrack Obama said that he was willing to negotiate over the issues.
As the session went on the currency once again softened after the IMF downgraded its forecast for the global economy, citing the recent government shutdown as one of the reasons for a reduction in growth.
Currently the US Dollar is trading in the region of 0.6230 against the Pound and 0.7369 against the Euro.
The Euro hit a session high against the US Dollar in the afternoon after the IMF raised its growth forecast for the Eurozone. Concern over the ongoing impasse over the US budget and debt ceiling continued to weigh upon the US currency. Against the Pound the single currency was relatively unchanged as the IMF hiked its forecast for the UK.
Currently the Euro is trading in the region of 0.8454 against the British Pound and 1.3569 against the US Dollar.
The ‘Aussie’ edged higher against the Pound, Euro and US Dollar after it found support following the release of better-than-expected data out of China. The currency also found support from hopes that a deal could be reached regarding the upcoming debt ceiling deadline in the US.
Currently the Australian Dollar is trading in the region of 0.5885 against the Pound, 0.6960 against the Euro and 0.9445 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ increased against the Pound and Euro after data showed that business confidence in New Zealand surged to a 14-year high in the third quarter of the year. The positive data signals that the nation’s economy is rebounding from its mid-year slowdown. The positive data out of China also supported the currency.
Currently the New Zealand Dollar is trading in the region of 0.5167 against the Pound, 0.6112 against the Euro and 0.8294 against the US Dollar.
The ‘Loonie’ softened against many of its peers after the IMF reduced its forecast for the global economy. The currency managed to retain some strength after data showed that housing starts in the country were higher-than-forecast in September.
Currently the Canadian Dollar is trading in the region of 0.6031 against the Pound, 0.7133 against the Euro and 0.9680 against the US Dollar.